Posted on 15 Nov 2023
The market recovery in the US and China has encouraged hot rolled coil suppliers to push up their price offers to the Gulf Cooperation Council, notes Kallanish.
China-origin silicon-controlled 3mm SS400/S235JR grade HRC was offered in the GCC last week at $583-585/tonne. One deal was concluded through a trading company for 7,000-8,000 tonnes of various thicknesses, from 2.5-8mm, averaging at $585/t effective for January shipment. In addition, a separate Chinese mill sealed a 1.2mm thickness SPHT-1 grade deal at $620/t for December shipment, for a 2,500t cargo.
Unless otherwise stated, all prices are based on cfr Dammam, Jebel Ali or Sohar ports.
This week, first-tier mills from China, for January shipment, and the Far East, for February shipment, are offering 2mm SAE 1006 grade at $610-630/t, up $10-20/t on-week. Chinese-origin offers for 3mm+ A36 grade HRC are at $580-585/t, 1.2mm SPHT-1 grade at $630/t, and 0.35mm+ cold rolled full hard (CRFH) at $620/t, all for December shipment.
Hot-dip galvanised coil prices from United Arab Emirates mills, for 1mm Z120 GI, inched up $20-30/t on-week to $840-850/t fob and delivered within the country, seeing little resistance from buyers.
The region's only HRC producer, the Saudi mill, has told its customers it has limited allocation for January and may not be able to meet buyers' complete volumes for January shipments. Its January-rolling price for 3mm SPHC grade is at $720/t delivered within the country.
"Prices are being pushed up by cost pressures and the recovery in th major markets," comments one trader.
Source:Kallanish
